PETRI DISH PERSPECTIVES: BIOTECH UNLEASHED

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PETRI DISH PERSPECTIVES: BIOTECH UNLEASHED

Episode 2: Eli Lilly

March 20, 2025 • Manead Khin • Season 1 • Episode 2

Welcome to Petri Dish Perspectives: Biotech Unleashed! In this episode, we dive deep into the history and impact of Eli Lilly, a company that began with a small lab in Indianapolis and has grown into the highest market-cap pharmaceutical company in the world.

From pioneering insulin production in the 1920s to developing blockbuster drugs like Prozac, Humalog, and Mounjaro, Eli Lilly has played a crucial role in shaping modern medicine. We’ll explore the founding story, key scientific breakthroughs, and the company’s ongoing commitment to innovation in diabetes, neuroscience, and oncology.

Join me as we break down how Lilly continues to push the boundaries of biotech and what the future holds for this pharmaceutical giant. Grab a coffee, settle in, and let’s geek out on the science behind one of the most influential names in healthcare!

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Intro

Hello, and welcome to Petri Dish Perspectives: Biotech Unleashed, the podcast where we geek out about science and the companies shaping the future of healthcare. I’m your host, Manead, and I’m a scientist with a PhD background in cancer biology and analytical chemistry. Welcome to the second episode of Petri Dish Perspectives. Today we’re taking a deep dive into Eli Lilly, a company with over a century of history that’s still at the forefront of medical innovation. From insulin to becoming the highest market cap valued company, Eli Lilly has led to many life-changing breakthroughs.

Quick disclaimer, I give full credit to the original articles cited in the references in the transcript!

Grab a coffee or tea, settle in, and let’s jump in!

Segment 1: The Founding Story

Let’s rewind to 1876, in Indianapolis, Indiana. That’s where Colonel Eli Lilly, a decorated Civil War veteran and trained pharmacist, founded what would become one of the world’s leading pharmaceutical companies.

Born in 1838 in Baltimore, Maryland, Eli Lilly grew up in a family with a strong entrepreneurial spirit. His interest in medicine began at a young age when he apprenticed under a pharmacist, learning the trade from the ground up. After earning a degree in pharmacology, Lilly went on to open his own pharmacy in Indiana, but his career took a turn when the Civil War broke out. He joined the Union Army, rising to the rank of colonel.

During his time in the war, Lilly witnessed firsthand the devastating impact of poorly manufactured medicines on soldiers. This experience fueled his desire to create reliable, high-quality medications. After the war, Lilly briefly returned to the pharmacy business before deciding to focus solely on manufacturing medicines. In 1876, with just $1,400 and a small lab in Indianapolis, Eli Lilly and Company was born.

One of Eli Lilly’s earliest breakthroughs came in the form of gelatin-coated pills. This seems like a simple innovation but had a profound impact on medicine at the time. In the late 19th century, medications were often administered in powders or liquids, which made dosing inconsistent and sometimes unpleasant for patients. Colonel Eli Lilly, a trained chemist and pharmacist, recognized the need for a more reliable and patient-friendly solution.

The introduction of gelatin-coated pills not only improved the accuracy and consistency of dosing but also made the medication easier to swallow, which was a significant advancement for patient compliance. This approach ensured that patients received the same precise amount of medication with every dose, improving treatment outcomes and minimizing human errors.

This innovation wasn’t just about convenience—it set a new industry standard for pharmaceutical quality. Eli Lilly and Company became known for its meticulous attention to detail and commitment to excellence, earning the trust of physicians and patients alike. The success of these gelatin-coated pills laid the groundwork for the company’s reputation as a reliable and forward-thinking leader in the pharmaceutical industry, paving the way for future breakthroughs.

Segment 2: Early Growth and Key Innovations

In its early decades, Eli Lilly and Company thrived on commitment to innovation and quality. By the early 1900s, the company had introduced over 100 products, including pioneering treatments for infectious diseases and surgical antiseptics.

Eli Lilly’s story takes a remarkable turn in the 1920s, a decade that would forever change the course of diabetes treatment. At that time, diabetes was a devastating diagnosis, with little hope for patients to live beyond a few months or years. But a groundbreaking discovery by Canadian researchers, Frederick Banting and Charles Best from the University of Toronto, offered a glimmer of hope.

Banting, a medical doctor, was deeply driven to find a solution for diabetes after witnessing its devastating effects. Alongside Best, a brilliant medical student, Charles Best. The duo discovered that insulin extracted from the pancreas could be used to regulate blood sugar levels in diabetic patients. It was a life-saving breakthrough—but the challenge of mass-producing insulin remained.

G.H.A. Clowes, research director of Eli Lilly and Company based in Indianapolis, Indiana, first became aware of the Toronto group’s work in late 1921. Clowes had been in communication with Macleod. Who is Macleod, you ask? John James Rickard Macleod played a crucial role in the discovery of insulin, being recognized alongside Frederick Banting as co-discoverers and jointly awarded the Nobel Prize in Physiology or Medicine in 1923 for their work; Macleod provided essential laboratory space, guidance, and oversight during the research process that led to the isolation of insulin, allowing for its eventual clinical use to treat diabetes. In late May 1922, the University of Toronto and Eli Lilly worked out an agreement that gave Eli Lilly the exclusive rights to manufacture and distribute insulin (free of charge) to selected physicians and hospitals.

With its expertise in pharmaceuticals and advanced manufacturing, the company partnered with the University of Toronto team to scale the production of insulin. This collaboration led to the first commercially available insulin in 1923, forever transforming diabetes care. Eli Lilly’s innovation didn’t stop there—the company continually improved insulin formulations, ensuring it became more effective and accessible over the years.

A quick angle here is that we all know that the price of insulin has been a topic of interest for a long time in the US. According to the Rand Corporation, in 2018, the average list price for one vial of insulin in the U.S. was $98.70. Most people generally need one shot of long-acting insulin per day, but some may need up to four shots per day. So, you can imagine how expensive it can get for patients with a more serious diabetic condition. However, in January 2023, Lilly imposed a $35 monthly cap on the out-of-pocket cost of insulin for seniors enrolled in Medicare.

In 1952, Eli Lilly and Co. became a publicly traded company. During the 1950s, Eli Lilly's successes included obviously insulin but also the development of the antibiotics such as vancomycin and erythromycin. More importantly, Lilly was chosen as one of five manufacturers of the polio vaccine, and by 1955 it was manufacturing more than half the polio vaccine produced in the United States.

Segment 3: Blockbuster Drugs and Breakthroughs

Fast forward to the latter half of the 20th century, and Eli Lilly’s impact on medicine only grew. The company developed several blockbuster drugs that transformed the lives of millions. Let’s take a closer look:

Prozac: Introduced in 1987, Prozac wasn’t just a game-changer for Eli Lilly—it transformed how the world viewed and treated mental health. As the first selective serotonin reuptake inhibitor (SSRI), Prozac revolutionized the treatment of depression and anxiety by offering a more targeted, effective, and tolerable option compared to older antidepressants. The drug became a phenomenon, mentioned in films, books, and even casual conversations as a symbol of modern psychiatry. Its popularity was so immense that it sold over $22 billion worldwide during its patent life, making it one of the most successful drugs in history. Beyond its financial impact, Prozac destigmatized mental health treatments, opening the door for millions of people to seek help for conditions that were once taboo.
Humalog: When Eli Lilly launched Humalog in 1996, it set a new standard for diabetes management. This fast-acting insulin was the first of its kind, designed to mimic the body’s natural insulin response during meals. It gave patients greater flexibility and control over their blood sugar levels, improving quality of life. Humalog remains a cornerstone of diabetes care, contributing to Eli Lilly’s dominance in endocrinology. Over the years, Humalog has generated tens of billions of dollars in revenue, solidifying Lilly’s leadership in the diabetes market. Its impact extends beyond sales—it underscored Lilly’s commitment to making diabetes management simpler and more effective for patients.
Emgality: Approved in 2018, Emgality is a once-monthly injection for the prevention of migraines, a condition that affects more than 1 billion people globally. Emgality is part of a new class of drugs called calcitonin gene-related peptide (CGRP) inhibitors, which specifically target the proteins involved in migraine attacks. It was a breakthrough for patients who had few effective options for preventing these debilitating headaches. By 2023, Emgality had become a significant revenue driver for Lilly, generating $1.4 billion annually, reflecting the company’s ongoing success in addressing chronic conditions with innovative therapies.
Ozempic: While Novo Nordisk’s Ozempic has dominated headlines as a weight-loss phenomenon, Eli Lilly has stepped into the spotlight with Mounjaro (tirzepatide), a dual GLP-1 (Glucagon-Like Peptide-1) and GIP (Glucose-Dependent Insulinotropic Polypeptide) receptor agonist. These hormones play a key role in regulating blood sugar and appetite, making drugs that target them highly effective for improving insulin sensitivity, controlling blood sugar, and promoting weight loss. Originally approved in 2022 for Type 2 diabetes, Mounjaro has delivered groundbreaking results in weight management trials, with patients losing up to 20% of their body weight. The success of ozempic and mounjaro has been fueled in part by Hollywood’s obsession with weight-loss drugs, as celebrities and influencers openly discuss their use, making GLP-1 medications like Ozempic and Mounjaro a pop culture phenomenon. With high-profile figures flaunting rapid transformations, these drugs have become status symbols, reshaping beauty standards and fueling demand beyond medical necessity. The trend has been so explosive that it has led to supply shortages and raised ethical concerns about access for those who genuinely need the medication for diabetes management. With reports predicting $25 billion in annual sales by 2030, Mounjaro could even surpass Ozempic as the market leader. Beyond the staggering numbers, Mounjaro represents Lilly’s innovative approach to metabolic health, offering new hope to millions struggling with obesity and related conditions—though its rise also raises critical questions about the intersection of medicine, beauty, and celebrity culture.

Segment 4: People Who Made Their Mark

Eli Lilly has been home to some incredible talent over the years.

Dr. Richard DiMarchi: A leading biochemist at Lilly, DiMarchi’s research on peptide hormones paved the way for advancements in diabetes treatments. He is a former Group Vice President at Eli Lilly and later at Novo Nordisk. He is recognized for his contributions to the discovery and development of rDNA-derived Humalog.

Segment 5: What’s Next for Eli Lilly?

Eli Lilly shows no signs of slowing down. The company is deeply invested in areas like Alzheimer’s research, autoimmune diseases, diabetes, and oncology.

Additionally, Lilly is leveraging cutting-edge technologies like AI and gene therapy to accelerate drug discovery and improve patient outcomes. Its focus on precision medicine and personalized treatments reflects the future of healthcare.

With its rich history and forward-looking vision, Eli Lilly remains a pillar of innovation in the pharmaceutical industry.

As of December 2024, Eli Lilly’s market cap is $694B while their enterprise value is at about $722B. When this episode was recorded, Eli Lilly stock sat at $772 a piece compared to about $4.06 a piece in 1985.

Segment 6: The Keys to Eli Lilly’s Success

So, what makes Eli Lilly stand out in the competitive world of pharmaceuticals? What do I think? Here are a few key factors:

Research-Driven Culture: Lilly has always prioritized science and innovation, dedicating significant resources to research and development. The company’s global network of R&D facilities ensures a steady pipeline of new drugs.
Collaboration: From its early partnership on insulin to modern collaborations in oncology and neuroscience, Lilly has a long history of working with leading researchers and institutions.
Long-Term Vision: Unlike companies focused on short-term gains, Lilly takes a patient approach, investing in areas like Alzheimer’s and autoimmune diseases that require years of research.
Commitment to Patients: Lilly’s focus on patient-centered care is evident in its wide range of accessibility programs and educational initiatives.

Outro

That’s a wrap for this episode of Petri Dish Perspectives! I hope you enjoyed exploring the incredible story of Eli Lilly and its groundbreaking contributions to medicine. Don’t forget to subscribe, leave a review, and share this episode with your fellow science enthusiasts. Got a biotech company or topic you want us to cover? Drop me a comment. Until then, stay curious and see you at next episode.

References

People on this episode

Manead Khin

Host